It was a wild year in the market as investors juggled ongoing pandemic recovery, inflation, monetary policy, high valuations, and geopolitical issues.
The company’s revenue is up 65% over the first nine months of its fiscal year, and operating income has climbed 130%.
In a year where runaway valuations made headlines for tech stocks, Alphabet delivered stellar returns based primarily on fundamentals rather than inflated valuation ratios.
Alphabet is a major player in a few different growth markets, but its sales and profits still come overwhelmingly from its advertising business.
Things got worse in 2018 when regulators placed an asset cap on the bank, limiting its scale until a number of operational and financial health issues were rectified.
Those are nice results, but the stock’s returns were driven primarily by valuation — Novo Nordisk is more expensive based on multiple ratios.
Novo Nordisk has a highly rated pipeline, and it seems like a safe bet that this company will continue marching forward in the foreseeable future.
Sales grew 16% over the first three quarters of the year, driving operating income up nearly 30%.
Investors are optimistic about consumer strength, DIY popularity, and homebuilding activity.
Panic early in the pandemic eventually shifted to optimism, as investors threw capital at stocks involved in remote activities including work, healthcare, exercise, and shopping.
Those companies have all experienced their own challenges and successes, but this is a clear case of market forces driving returns.